Analysis of the Current Situation of Polkadot and Strategic Recommendations for Future Development

Introduction

As a research team that has been deeply involved in the Polkadot ecosystem for nearly five years, we have decided to shift from passive research to active participation to promote the development of Polkadot. This article is our planning report on the growth strategy for Polkadot, addressing the most pressing issues and proposing improvement ideas.

The Current Status of Polkadot

1. Technical Update Status

Polkadot has completed version 1.0 and proposed the vision for 2.0. Important technical updates include:

• OpenGov: A new decentralized governance model
• XCM V3: Improved Cross-Consensus Message Format
• Polkadot 2.0: Proposes several new concepts and technologies, such as Accord, SPREE, Project CAPI, etc.

2. On-chain Situation

• Development activities continue to trend upward
• Daily active accounts and revenue have declined.
• The total locked value of the parallel chain shows a downward trend.
• The staking rate of DOT is 46%, which is below the ideal level.

3. Developer Information

Polkadot has a large developer base:

• 645 full-time developers, ranked second
• The total number of developers is 1923, rising to second place.

4. Ecological Situation

• There are 580 ecological applications, covering DeFi, infrastructure, NFTs, etc.
• The launch of XCM V3 has attracted widespread attention.
• Moonbeam, Acala and other parachains maintain a high level of TVL

5. Market Capitalization

• Market cap approximately $3.375 billion, ranked 14
• In recent months, there has been a downward trend, with prices falling by 31.87%.

6. Social Media Situation

The official media channels of Polkadot are abundant, but some data performs poorly:

• Less interaction and comments on Twitter
• The discussion activity on platforms like Reddit is relatively low.

7. Treasury Governance Situation

OpenGov faces some challenges:

• The voting rate differences among different orbits are obvious.
• Decrease in treasury balance
• The referendum approval rate is relatively low.

Issues Facing Polkadot

1. Economic model issues

• Inflation rate is relatively high
• The use cases for DOT are relatively few.

2. Operational Issues

• On-chain data performs poorly
• Social media data performance is poor
• Lack of a platform for comprehensive display of the ecosystem

3. User threshold issue

• High difficulty of use
• High learning cost

4. Treasury governance issues

• Low voter turnout
• Game Theory Attack Risk
• Non-representative ( whale impact ) issue

SWOT Analysis of Polkadot

Advantages

• Technological Innovation
• Strong developer base
• Rich multi-chain ecosystem

disadvantage

• Token price did not meet expectations
• The user threshold is too high
• The DeFi ecosystem is not mature

Opportunity

• Increase user engagement
• Innovative concepts and technologies
• Utilize idle funds

threat

• Treasury governance challenges
• Competitive pressure
• The market outlook is not optimistic

A Macro Analysis of Polkadot's Situation from Two Perspectives

1. Endgame Perspective

The positioning of Polkadot in the overall blockchain landscape:

• The multi-chain ecosystem with the highest internal security coefficient
• The security between parallel chains is the same.
• Suitable for physical enterprises or organizations to achieve fair mutual trust online.

2. Periodic Angle

• The impact of macroeconomic environment cycles is significant.
• Public chain development cycle: Polkadot missed the favorable opportunity in 2021.

How can Polkadot break through in the current market?

Overall Approach: Consolidating the Power of Governance

• Promote the coordinated development of official and decentralized governance
• Formulate a strategic development outline for treasury governance

values the balance between price and development.

• Unofficial roles can pay attention to the value of DOT
• Use price as an important indicator to measure ecological confidence.

Strategic positioning and objectives

• Positioning: Multi-core computers from a full-chain perspective
• Goal: Achieve the growth of Polkadot

Solutions or Ideas

1. Polkadot's "governance framework"

Establish a framework similar to national governance, including:

• Technical Department
• Public Relations Department
• Investment Department
• Governance Department
• Activity Department

2. Ten Strategic Goals for Polkadot Treasury Governance

1. Support the development of LSDFi and DeFi projects
2. Timely launch of public chain incentive program
3. Encourage the development of RWA, Web2.5, and DePIN.
4. Continuously build public goods
5. Build the citizen system
6. Design the long-term plan for Polkadot's Odyssey
7. Make Polkadot a technology evergreen.
8. Let Polkadot become the core of the entire chain.
9. Mobilize ecosystem participants to jointly promote and publicize
10. Establish a feedback iteration mechanism

3. Three areas for improvement

1. Improve inflation: dynamic adjustment of inflation
2. Improve operations and lower the threshold
3. Improve governance functions

4. Possible objections in the proposal

1. How to ensure that the support from the treasury does not affect the price of DOT?
2. Do these strategies contradict the purpose of decentralization?
3. How to avoid incentive measures from causing benefit transfer?

Afterword

The development path of Polkadot is full of challenges, but we will continue to start from the Web3 spirit and explore new possibilities. We look forward to more people joining in to promote the continuous advancement of the Polkadot ecosystem.